In an oligopoly, firms can increase their market power by
A) undertaking heavy advertising expenditure. B) colluding to set prices.
C) selling to buyers who have market power. D) pursuing dominant strategies.
B
Economics
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If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the other, this would be an example of
A) economies of scope. B) economies of scale. C) monitoring. D) increasing transactions costs.
Economics
The two primary explanations for the excess volatility of consumption are
A) consumers' limited life spans and credit market imperfections. B) credit market imperfections and changes in market prices. C) changes in market prices and distorting taxes. D) distorting taxes and consumers' limited life spans.
Economics